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| Volume 6, No. 1,
April 2007 |
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Efficiency of Indian
Manufacturing Firms: Textile Industry as a Case Study |
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Anup Kumar Bhandari |
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Economic Research Unit, Indian
Statistical Institute, India |
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Pradip Maiti |
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Economic Research Unit, Indian
Statistical Institute, India |
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| Abstract |
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Translog stochastic frontier production
functions are fit to firm-level cross-sectional data on India's
textile firms for each of five selected years to estimate technical
efficiency (TE) of firms. We find that average TE varies between 68
to 84% across these years and that individual TEs vary with
firm-specific characteristics such as size and age. Further, public
sector firms are found to be relatively less efficient. |
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Key words:
textile industry; technical efficiency; stochastic frontier;
Cobb Douglas production function; translog production function |
| JEL
classification:
C12; C13; L25 |
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